Coal from Russia may rise in price due to the ban on insuring ships

The price of Russian coal may rise due to the ban on European companies to insure cargoes of ships with coal from the Russian Federation. This was announced on the RBC TV channel by Deputy Minister of Energy Sergey Mochalnikov. He explained that a clarification had been issued prohibiting insuring and reinsuring ships that move in any direction.

“An explanation has been issued that prohibits European companies from insuring, reinsuring the cargo of ships with Russian coal that move in any direction, not only to Europe,” said the Deputy Minister (quoted from TASS). “And, of course, the saddest thing is that this will lead to an increase in the final price of our coal products in new markets,” Mr. Mochalnikov noted.

Now Australia and Indonesia are replacing Russian coal in the European market, but its cost is higher, Sergey Mochalnikov also said. According to him, the countries that have begun deliveries to Europe are freeing up those markets that Russia should strive to enter.

In May, it was reported that in the European Union want ban insurance for ships carrying oil from Russia, but these plans postponed.

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Maria Fedotova